Santos (ASX:STO) said the phase one of its Pikka oil project in Alaska is 85% complete and remains on schedule and within the capital expenditure guidance, according to a Wednesday filing with the Australian bourse.

The oil giant also floated the possibility of achieving early production, subject to weather and logistics. It has set a first oil target by mid-2026.

The project is expected to produce 80,000 barrels of oil per day.

Santos' shares were up almost 2% in recent Wednesday trade.